- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2022-11-23T14:02:00
The asset management arm of Goldman Sachs agreed to pay $4 million to settle charges it failed to follow its own policies and procedures regarding a trio of investment products marketed for their environmental, social, and governance (ESG) considerations.
Goldman Sachs Asset Management (GSAM) reached an agreement with the Securities and Exchange Commission (SEC) announced Tuesday that continues the agency’s crackdown on whether investment advisers are backing up their ESG claims. Earlier this year, the SEC fined a BNY Mellon subsidiary $1.5 million for failing to meet its ESG representations regarding certain of its mutual funds.
The SEC in the spring proposed a rule that would require registered investment advisers, investment companies, and business development companies to submit enhanced disclosures about funds that claim ESG strategies drive their investment choices. The proposal has been met with pushback from the industry.
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Goldman Sachs Group disclosed more regulators—beyond the Consumer Financial Protection Bureau—are investigating its credit card account management practices.
The Securities and Exchange Commission is expected to see through its controversial policy proposals from 2022, though the newly Republican-led House could slow the agency’s momentum.
Investment advisers and companies worry a recently proposed rule by the SEC that would require enhanced disclosures about funds that claim ESG strategies drive investment choices would have “substantial impact” without providing useful information to investors.
USAA Federal Savings Bank has been hit with its third cease and desist order from the Treasury Department’s Office of the Comptroller of the Currency in the past five years for failing to correct unsafe and unsound banking practices.
Becton Dickinson medical device company will pay $175 million for “repeatedly” misleading investors about its Alaris infusion pump, a product the company knew was flawed and was sold without the required patient-safety approvals, the Securities and Exchange Commission said.
The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
